Question about IRS and how much trouble my employer would get in?

Ok so heres the run down. My employer, a cigar shop, hired me summer of 2010 for the summer, and has re hired me for the summer of 2011. In 2010 I worked at the store along with all other employees under the table, so the boss wouldnt have to report to the IRS any tax information. Now that the boss is in divorce and the divorcee wants money or the business, the IRS is looking into the businesses financial records. I recently got in trouble at work for what the boss thought of as stealing, however, I was not fired because I proved I didn't do it. It seems at though my boss may fire me. If she does so I want to go to the IRS to report this crime she committed because, well shes a *****, and deserves to get in trouble for it. How much trouble would my employer get in if this was reported, would I get in more trouble for not reporting it sooner, What would happen to the business? etc